VA Awards $86.4M for Westside Medical Center Bed Tower Construction and Renovation
Contract Overview
Contract Amount: $86,436,422 ($86.4M)
Contractor: Walsh Construction Company
Awarding Agency: Department of Veterans Affairs
Start Date: 2004-09-30
End Date: 2009-11-30
Contract Duration: 1,887 days
Daily Burn Rate: $45.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: GENERAL CONSTRUCTION OF A NEW BED TOWER BUILDING FOR THE VA WESTSIDE MEDICAL CENTER AND THE RENOVATION OF BUILDING 1.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Veterans Affairs obligated $86.4 million to WALSH CONSTRUCTION COMPANY for work described as: GENERAL CONSTRUCTION OF A NEW BED TOWER BUILDING FOR THE VA WESTSIDE MEDICAL CENTER AND THE RENOVATION OF BUILDING 1. Key points: 1. The contract covers the construction of a new bed tower and renovation of an existing building for the VA Westside Medical Center. 2. Walsh Construction Company was awarded the contract, indicating significant experience in large-scale construction projects. 3. The project's duration of 1887 days suggests a complex undertaking with potential for schedule-related risks. 4. The sector is Commercial and Institutional Building Construction, a vital area for public infrastructure development.
Value Assessment
Rating: good
The award amount of $86.4 million for a major medical facility construction project appears reasonable given the scope. Benchmarking against similar VA or large-scale hospital construction projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the best value is obtained for the government. The specific price discovery mechanisms used during the bidding process are not detailed here.
Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by ensuring a competitive bidding environment for this significant infrastructure project.
Public Impact
Improved healthcare infrastructure for veterans at the VA Westside Medical Center. Potential for job creation during the construction phase. Modernization of medical facilities to enhance patient care. Long-term asset for the Department of Veterans Affairs and the community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration significantly exceeds typical construction timelines.
- No specific mention of small business participation.
- Potential for cost overruns in large, complex construction projects.
Positive Signals
- Awarded under full and open competition.
- Addresses critical healthcare infrastructure needs for veterans.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector, which is crucial for public services like healthcare. Spending benchmarks for similar medical facility construction projects would typically range from hundreds to thousands of dollars per square foot, depending on complexity and location.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the project's scale necessitated larger contractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects would include regular site inspections, progress reports, and quality control measures to ensure compliance with contract terms and specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Extended project duration presents a higher risk of delays and cost escalation.
- Lack of explicit small business participation noted.
- Complexity of integrating new construction with existing facilities.
- Potential for unforeseen site conditions in renovation work.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $86.4 million to WALSH CONSTRUCTION COMPANY. GENERAL CONSTRUCTION OF A NEW BED TOWER BUILDING FOR THE VA WESTSIDE MEDICAL CENTER AND THE RENOVATION OF BUILDING 1.
Who is the contractor on this award?
The obligated recipient is WALSH CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $86.4 million.
What is the period of performance?
Start: 2004-09-30. End: 2009-11-30.
What is the estimated cost per square foot for the new bed tower, and how does it compare to industry benchmarks for similar medical facilities?
The provided data does not include square footage, making a direct cost-per-square-foot calculation impossible. To assess value, this metric would need to be obtained and compared against industry averages for hospital construction, which can vary widely based on location, complexity, and specific technological integrations required for modern medical facilities.
Given the 1887-day duration, what are the primary risk mitigation strategies in place to prevent significant delays and cost overruns?
The long duration suggests a complex project with inherent risks. Mitigation strategies likely include detailed project scheduling, robust contingency planning, experienced project management from Walsh Construction, and regular progress reviews by the VA. Specific contractual clauses addressing delays and change orders would also be critical for managing risks.
How will the renovation of Building 1 integrate with the new bed tower to ensure seamless operational efficiency and patient flow?
The integration plan is not detailed in the provided data. Effective integration would require careful architectural and engineering design, phased construction to minimize disruption, and close coordination between the construction team and VA medical staff. Ensuring seamless patient flow and operational continuity between the old and new facilities is paramount.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 402-AE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Walsh Group Ltd., the (UEI: 121476675)
Address: 929 WEST ADAMS ST., CHICAGO, IL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $86,436,422
Exercised Options: $86,436,422
Current Obligation: $86,436,422
Timeline
Start Date: 2004-09-30
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2010-06-22
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